Judge Flames Firm Luring Authors Out of $1.5 Billion AI Pact (2)

A federal judge accused a third-party law firm of attempting to “trick” authors out of their record $1.5 billion copyright class action settlement with Anthropic PBC.

Judge William Alsup called ClaimsHero’s tactics to lure authors away from the deal “a fraud of immense proportions” during a Thursday hearing in San Francisco. He demanded the company alter its “misleading” communications with potential claimants.

He told ClaimsHero’s counsel, Devin Freedman of Freedman Normand Friedland LLP, he’s “disturbed” by the “blatant attempt by your client to trick people into opting out” to make a “quick buck” by accumulating opt outs to try and cut a sweeter deal with Anthropic. Alsup said that would amount to “extortion” and that he’d refer the company to the US attorney if it happens.

The court gave ClaimsHero 48 hours to update their website to clarify that the company has no experience litigating in federal or state court. They must also explain on their site that the court ruled for Anthropic on the question of whether it’s legal to train AI models on the authors’ books. They must also terminate any use of the word “claims” from their site that class counsel believes is misleading.

As Anthropic’s counsel, Douglas Winthrop of Arnold & Porter Kaye Scholer LLP, exited the courtroom, he was heard saying that Alsup had taken a “flamethrower” to ClaimsHero.

An evidentiary hearing is scheduled for Nov. 25 for the court to question authors who’ve signed up for ClaimsHero’s services.

The authors on Nov. 4 asked the US District Court for the Northern District of California to limit communications from the third-party claims company. Class counsel argued ClaimsHero’s website encourages authors who believe they qualify for a settlement payout to complete a form that may actually exclude themselves from the deal.

Under the deal, Anthropic will pay about $3,000 for each of the nearly 500,000 included books to settle the lawsuit over the company’s AI training practices.

No Hero

ClaimsHero pushed back on Wednesday, arguing their website was never misleading. The outside firm accused authors’ attorneys of seeking a “complete gag order” to protect their potential $375 million payout in legal fees, a violation of ClaimsHero’s First Amendment rights.

Class counsel, Rachel Geman of Lieff Cabraser Heimann & Bernstein LLP, called the free speech argument a red herring. The motion is “not an attempt to limit speech,” she said “this is an attempt to stop fraud.”

Alsup went a step further, slamming ClaimsHero for attempting to mislead its potential clients by claiming the firm could take on Anthropic without a substantive track record in litigation. Alsup called ClaimsHero’s lawsuit experience “Z-E-R-O” and dubbed their marketing as “propaganda.”

“ClaimsHero isn’t a hero of anything,” he told Freedman.

Freedman retorted, asserting the company hasn’t lied and instead made it clear authors have a right to the $3,000 award. The website encourages class members to opt out so ClaimsHero can fight for a bigger amount while disclosing lawsuits are uncertain and may take a long time, he said.

Alsup said the settlement is a home run for authors and that it’s “baloney” to tell authors they’ll get more.

“You may have your doubts about its ability to deliver on its promises,” Freedman said. “But that’s a different question and ClaimsHero has been acting in good faith.”

Susman Godfrey LLP, Cowan Debaets Abrahams & Sheppard LLP, Edelson PC, and Oppenheim + Zebrak LLP also represent the authors.

Anthropic is also represented by Cooley LLP, Latham & Watkins LLP, Lex Lumina LLP, and Morrison & Foerster LLP.

The case is Bartz v. Anthropic PBC, N.D. Cal., No. 24-cv-05417, hearing held 11/13/25.